The implications of a BRICS bank for South African agriculture

Rearabetswe Phokontsi, a trainee economist at the Agricultural Research Council, considers the role of the New Development Bank as it sets about fostering collaboration and development among BRICS members.

- Rearabetswe Phokontsi

The main objectives of the BRICS bloc are to improve trade and economic co-operation among the member countries, encourage equitable growth and sustainable development, and encourage political collaboration and understanding between member countries (Balaji, 2023).

Developing countries and emerging markets believe that Western countries are abusing their power when it comes to trade and political relations, citing even the way they are handling the Russia-Ukraine conflict and the associated negative effects on emerging economies.

LEVERAGING ADVANTAGES

Geographically, the BRICS countries have a strategic trade advantage on world markets. South Africa and Brazil, being in the Southern Hemisphere, have counter-seasonality advantages over Western countries when it comes to the trading of agricultural products. For South Africa, this became evident during the COVID-19 pandemic, when the export of citrus to Europe grew exponentially.

Because of its advanced infrastructural development and world-class financial system, South Africa serves as a gateway into Africa. Many multilateral companies therefore prefer to establish themselves in South Africa before they enter the rest of the continent.